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Thread: Basic bank account and bank charges?

  1. #1
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    Basic bank account and bank charges?

    Hi wondered if anyone could help as Google confusing me. I have a basic bank account wih lloyds. I had a contract phone I paid 12 pound a month for. I let my grandson use it in summer hols. I phoned 02 to ensure it was capped. It was, apparently.

    He ran up a massive bill of £101. The first I knew of this was when it went through my bank account. I didn't have enough funds to pay it. Iv cancelled the contract and am in an ongoing dispute with the company because it should have been capped.

    This phone bill caused a knock on effect as all my bills come out at the same time over two days. The charge of £101 was more than I had in my bank for the other bills. All my direct debits that week should have come to £97

    I ended up with £70 bank charges, my direct debits weren't paid and I incurred further charges from car insurance for a late payment.

    I don't have an overdraft facility. I can't understand why the bank charges me because I can't actually go into the red. If i dont have enouh money in my account the direct debit is simply not paid.

    I had to put money in the bank and ring all my bill people and pay them directly over the phone.

    I only have benefits going into my account. I know from Google that being in reciept of benefits is no barrier against bank charges, but I don't know why I'm being charged because nothing was paid out. Hence my extra charges from insurance company etc. I can only spend what's actually in my account.

    I'm well aware of this as lloyds once refused to let my sky bill go through because my balance was 2p short! And yes they charged me £15 too.

    This below is a related issue

    My situation is further complicated by the fact iv had to declare bankruptcy. This has been ongoing for a few months. But it was stamped by the judge yesterday. The receiver rang me today and asked if I had any debt with my bank. I said no except for £70 of bank charges they are due to take on the 1st Nov. She said because I'm in debt wih this its likely the bank will shut down my account and not let me continue to bank with them.

    Im so stressed out. I'm in reciept of esa which is due to go in bank next week.

    Does anyone have any advice for me, or been through a similar experience with one or both the issues iv written about here?

  2. #2
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    all i can say is,you need to set up a post office account and contact the DWP regarding your situation

  3. #3
    Senior Member nukecad's Avatar
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    Also speak to Lloyds, surprisingly they can be quite helpful.

    I'm not sure just how it works with basic accounts, but with a current account any direct debit that cannot be paid incurs a penalty fee.
    They won't make the direct debit payment if it goes over your limit by one pence, but will debit their own penalty fee of about £40.

    I once fell foul of this stupid situation and gave them a ring to explain my circumstances.
    They cancelled the charges made that month and put my account on a 'special basis' for six months, it wasn't called that but I can't remember their exact term for it, it meant that I had no account fees for six months and only had to pay my overdraft interest.
    (And you can't have an overdraft on a basic account).

    I then cancelled all my direct debits and now pay my bills online with my debit card.

    Just for completeness, it seems that at least once a year somebody comes across a piece of legislation that says that banks cannot make charges against an account that is only being serviced by benefits, and so think that they should not be paying any monthly fees.
    This is incorrect, the word 'Charges' in this legislation refers to taking money from one account (say a savings account) to offset a debit on another account (say a current account).
    It does not refer to 'Fees'. (Although sometimes 'Fees' wrongly get called 'Charges' on your statement).
    I don't know everything. - But I'm good at searching for, and finding, stuff.

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  4. #4
    Senior Member Kodiak's Avatar
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    What I did several years ago now, was to get rid of my Bank as I was fed up with all their Charges for this and that. I was paying them several Hundreds of pounds a year.

    I found a online account that offered all the advantages of a Current Accvount but none of the nasty Charges. This is CashPlus and I have never regretted it. OK I do have to pay them £4.95 a Month for the account but I have never had o pay any other charges.

    You get a Gold Mastercard so you can buy online or in Shops, pay by Direct Debits or Standing Orders, Benefits, Wages stc can be paid into your Account. You get your own Bank Account Number with the Bank Sort Code. You can withdraw from any ATM so you get easy access to your Money. If you have some cash and you want to bank it you just go to any Post Office and pay it in there, NO Charge.The only thing you do not get is a Cheque Book, that is not a real problem as Cheques are on the way out.

    As long as you can Verify your name and address you are 100% guaranteed acceptance with no credit checks, Instant Approval. I get my Pension and DLA Paid into this account and in my opinion it was the best thing I ever did. Goodbye Banks with High Bank Charges and hello to a online Bank that you know exactly what you will have to pay right from the start.

    OH yes and one other thing if by chance you do not have sufficient funds to pay a direct debit they will email you the day before so you can nip down to the Post Office and make a deposit. The money is on your account instantly so no worries about it taking days to be credited to your account. If you do not get to deposit the necessary funds then your direct debit will be bounced if you do nor have sufficient funds. How much will this cost you you ask and the answer is ZERO, £0.00, they do not make any charges except for your monthly charge of £4.95. A Refreshing Change in the Banking World.

    Here is a Link to their web page just in case anyone is at all interested.

    http://www.mycashplus.co.uk/offers/c...CaMhoCph7w_wcB
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  5. #5
    Senior Member Lighttouch's Avatar
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    You've got what is known as a Universal Current Account - As you say you can put money in but initially you won't be given a debit card or cheque book until the bank see that you can manage your account responsibly.

    The mobile phone bill. It looks like your grandson was browsing the internet and used more data than you subscribed too. He may have also been sending photos via text messaging of adding them to Facebook /twitter - the bills can spiral out of hand.

    Now that you have declared yourself bankrupt you will ave cleared up your old debts but you''ll find it very difficult getting cheap credit if at all.

    As has been said you need to talk to your bank and explain what has happened in person. They are more likely to be a bit more sympathetic if you can speak to someone face-to-face.

    Try to make sure that things like Sky bills are paid by direct debit four days after you get paid. You did a kindly thing offering to foot someone elses mobile phone bill - just don't in future if you can't trust them to be responsible.

  6. #6
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    As you have declared bankruptcy, forgot about these debts to the phone company, bank etc. This is now for the official receiver to deal with. Your unlikely to get another contract phone or bank account now.

    As already mentioned, open a post office account and make sure its before your next benefit payment. It does mean no more paying by card and everything will have to be cash. Your also going to need to sort out your mobile phone. For the time being, maybe look into a cheap pay as you go phone. Some of the bundles they offer are just as good as the deals offered by sim only contracts.

    PS. I was declared bankrupt about 8 years ago, so im talking from personal experience. Your unlikely to be accepted for any form of credit for the next 6 years. The few that will deal with you are likely to be high interest offers such as certain doorstep loan companies.

    Fortunetly nothing was taken from my income to repay debts, however i was on a very low income at the time. Not sure how it'd work on disability benefits, as the income is often greater than many in full time work.

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